A school district received property taxes in advance of the year in which they were due and for which they were budgeted. Such taxes should be recognized as 1. Revenue 2. A liability 3. Deferred revenue 4. A deferred inflow of resources

Option D

Such taxes should be recognized as  A deferred inflow of resources

The deferred inflow of resources is an addition of net assets by the government that pertains to a scheduled reporting period. For case, deferred income and advance collections. It should be announced as a separate part following responsibilities in the report of financial position.

Marketing of future revenues, Property taxes collected, Specific assessments are beneath the deferred inflow of resources.  Deferred inflows of resources at the close of the reporting period, that part should be added in the likewise net position component as the unspent amount.

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b) to encourage free trade